Shares of Gopal Snacks Ltd, Bikaji Foods Ltd and Pratap Snacks Ltd gained over 7% on Tuesday after the GST Council on Monday announced revision of rates on namkeen. The GST Council on Monday announced reduction in the rate on extruded savoury snacks to 12% from the earlier 18%. The GST rate on namkeen or salty items such as fruit and vegetable chips, bhuja, snack foods etc is already 12%. The reduction in GST rates on extruded snacks is in line with other savoury snacks.
Company shares
Shares of Bikaji Foods are trading 7.6% higher at ₹ 899 today. While Bikaji Foods shares have gained nearly 60% so far this year, shares of Prataap Snacks are up 8% today and hit an intraday high of ₹ 877.10. While the stock has fallen over 23% so far this year. Shares of Gopal Snacks are trading over 8% higher at ₹ 354 today. Abnish Roy of Nuvama said he does not think rationalisation of rates on extruded snacks will have any major impact on listed companies.
what did the finance minister say
Let us tell you that a decision was taken on extruded expanded salty food items of Namkeen. The GST rate on these is being reduced from 18 percent to 12 percent prospectively, not retrospectively. Finance Minister Nirmala Sitharaman said that the GST rate of extruded or expanded products, Namkeen or Namkeen (excluding unfried or uncooked snack pellets, by whatever name called, manufactured through the process of extrusion) will be reduced from 18 percent to 12 percent, which is equivalent to Namkeen, Bhujia, Mixture, Chabena (pre-packed and labeled) and similar food preparations in ready-to-consume form. Unfried or uncooked snack pellets, by whatever name called, manufactured through the process of extrusion will continue to attract a GST rate of 5 percent.
